BPCL Raises FY27 Capex Plan To Expand Refinery Operations
Bharat Petroleum Corporation Limited (BPCL) is set to invest nearly ₹25,000 crore during FY27 as the state-run oil marketing company accelerates refinery expansion and energy infrastructure projects amid volatile global crude oil markets.
The planned capital expenditure is significantly higher than the ₹20,400 crore spent during the previous financial year and will mainly focus on refinery upgrades, fuel infrastructure expansion and strategic energy projects.
According to the company’s management, BPCL remains committed to strengthening refining capacity and ensuring uninterrupted fuel supply despite rising geopolitical uncertainties and fluctuations in crude oil prices.
The company is also progressing on its proposed greenfield refinery project in Andhra Pradesh and expects to complete the detailed feasibility report (DFR) by June to finalise the overall investment requirement.
Fuel Price Hike Gives BPCL Temporary Relief
BPCL said the recent increase in petrol and diesel prices has provided some relief to oil marketing companies that have been facing mounting under-recoveries due to soaring international crude oil prices.
Retail fuel prices have risen by approximately ₹4 per litre over the last few days as oil companies attempt to offset losses linked to global supply disruptions and rising energy costs.
Speaking on the development, Sanjay Khanna said the company is operating in an extremely uncertain environment where crude oil prices continue witnessing sharp daily fluctuations.
Khanna stated that while the recent price hike has offered “some respite,” the company remains focused on meeting public fuel demand and maintaining supply stability.
He also referred to similar challenges faced during the Russia-Ukraine conflict, noting that oil companies had eventually recovered from earlier periods of financial stress.
Refinery Shutdowns Delayed To Meet Domestic Demand
To maintain sufficient fuel availability across the country, BPCL has postponed regular maintenance shutdowns at its refineries from April to September.
The company currently operates refineries in Mumbai, Kochi and Bina, which together play a crucial role in India’s fuel supply network.
According to BPCL, delaying maintenance activities will help maintain higher refinery throughput levels and support rising domestic fuel demand during a period of global energy volatility.
The company reported refinery throughput of 10.4 million tonnes during the fourth quarter, while refinery capacity utilisation reached an impressive 118%.
BPCL’s domestic fuel sales also grew 3.28% year-on-year to 13.86 million tonnes during the quarter.
BPCL Reports Strong Q4 FY26 Financial Performance
BPCL posted a 28% year-on-year increase in consolidated net profit to ₹5,624 crore during Q4 FY26.
Revenue from operations rose 6.3% year-on-year to ₹1.35 trillion during the quarter, supported by stable refining and fuel marketing operations.
However, on a sequential basis, the company’s profit declined due to foreign exchange losses and impairment related to BPCL’s investment in a Brazil-based oil and gas project.
As of March 31, BPCL’s LPG under-recovery stood at ₹12,318.52 crore. During FY26, the company received government compensation worth ₹3,164.15 crore toward LPG subsidy-related losses.
Energy Sector Faces Continued Global Uncertainty
BPCL said it maintained operational stability across refining and fuel marketing businesses despite increasing uncertainty in global energy markets.
Industry experts believe India’s oil marketing companies may continue facing near-term pressure as geopolitical tensions, crude oil price volatility and global supply chain disruptions continue impacting energy markets worldwide.
At the same time, BPCL’s aggressive expansion strategy highlights India’s long-term focus on strengthening domestic energy infrastructure and fuel security.
